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DECISION No

DECISION No. 94/2002/QD-TTg OF JULY 17, 2002 ON THE GOVERNMENT�S PROGRAM OF ACTION FOR IMPLEMENTATION OF THE RESOLUTIONS OF THE FIFTH PLENUM OF THE PARTY CENTRAL COMMITTEE, IXTH CONGRESS

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of December 25, 2001;

Pursuant to the Government�s Resolution No. 07/2002/NQ-CP of June 3, 2002,

DECIDES:

Article 1.- To issue together with this Decision the Government�s program of action for implementation of the resolutions of the fifth plenum of the Party Central Committee, IXth Congress.

Article 2.- This Decision takes effect as from the date of its signing.

Article 3.- The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the People�s Committees of the provinces and centrally-run cities shall have to implement this Decision.

Prime Minister
PHAN VAN KHAI

THE GOVERNMENT�S PROGRAM OF ACTION FOR IMPLEMENTATION OF THE RESOLUTIONS OF THE FIFTH PLENUM OF THE IXTH PARTY CENTRAL COMMITTEE ON FURTHER RENOVATING, DEVELOPING, AND RAISING THE EFFICIENCY OF, THE COLLECTIVE ECONOMY, AND FURTHER RENOVATING MECHANISMS AND POLICIES FOR, ENCOURAGING AND CREATING CONDITIONS FOR THE DEVELOPMENT OF, THE PRIVATE ECONOMY

(Issued together with the Prime Minister�s Decision No.94/2002/QD-TTg of July 17, 2002)

A. OBJECTIVES AND REQUIREMENTS OF THE PROGRAM

The objectives of the Program of action (Program) are to affirm and supplement tasks of the Government, ministries, branches and local administrations at all levels in order to organize the successful implementation of the Party Central Committee�s resolutions on further renovating, developing, and raising the efficiency of, the collective economy; renovating mechanisms and policies for, encouraging and creating conditions for development of, the private economy, thereby contributing to liberalizing and developing production forces, mobilizing social resources for production and business, raising the competitiveness of enterprises, creating more jobs, improving the people�s life, promoting the distribution of social labor, restructuring the national economy along the direction of industrialization and modernization, and developing the socialist-oriented market economy.

The Program�s requirements are: on the basis of fully grasping the viewpoints, objectives and contents of the resolutions, to concretize them into legal documents in a complete, synchronous and timely manner in order to create a favorable institutional environment and social psychology for development of the collective and private economies; to continue perfecting and enhancing the State management and organize the fruitful implementation of Resolutions No. 13 and No. 14 of the fifth plenum of the IXth Party Central Committee.

B. PRINCIPAL CONTENTS OF THE PROGRAM

Together with the implementation of the current programs of action as well as mechanisms and policies, the ministries, branches and local administrations should take initiative in organizing the performance of the following specific tasks:

I. Creating a favorable institutional environment for business establishment and operation

1. The Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Ministry of Agriculture and Rural Development and Vietnam Union of Cooperatives in boosting the implementation of the Cooperatives Law in 2002; summing up and determining criteria for classification of cooperatives that have been transformed or founded under the Law; and in propagating and popularizing efficient models of the collective economy.

2. The Finance Ministry shall assume the prime responsibility and coordinate with Vietnam State Bank and the People�s Committees of the provinces and centrally-run cities in definitely handling from now to the end of 2002 the outstanding debts of agricultural cooperatives according to the Prime Minister�s Decision No.146/2001/QD-TTg of October 2, 2001 and the Finance Ministry�s Circular No.31/2002/TT-BTC of March 29, 2002.

3. In the first quarter of 2003, the Finance Ministry shall assume the prime responsibility and coordinate with Vietnam State Bank in submitting to the Prime Minister a scheme on orientations for, and solutions to, handling debts which have already been included in the repayment plans of non-agricultural cooperatives.

4. The Ministry of Agriculture and Rural Development shall assume the prime responsibility and coordinate with the People�s Committees of the provinces and centrally-run cities in directing the definite handling (transformation or dissolution) of existing old-typed agricultural cooperatives (3,169 cooperatives) by the end of the second quarter of 2003.

5. By the end of the third quarter of 2002, the ministries already assigned tasks shall have to guide the implementation of the Prime Minister�s Decision No.132/2000/QD-TTg of November 24, 2000 on policies for rural trade and craft development.

6. In the second quarter of 2003, the Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the concerned ministries and branches in finalizing the scheme on amendment and supplementation of the Cooperatives Law along the direction of: perfecting the models of new-typed cooperatives, including agricultural cooperatives, cottage-industrial and handicraft cooperatives and service cooperatives; simplifying the cooperative setting-up procedures as well as business registration order and procedures; expanding the scope of cooperatives� membership; diversifying modes of, and properties for, capital contribution; reforming public administrative services for cooperatives; clearly determining the State management powers of the People�s Committees of various levels; clearly defining the management functions of the Management Boards and the administration function of the mangers of cooperatives.

7. The ministries, the agencies attached to Government, and the People�s Committees of localities shall accelerate the implementation of the Enterprises Law in strict compliance with the Prime Minister�s Directive No.04/2002/CT-TTg of February 8, 2002 on accelerating the implementation of the Enterprises Law.

8. The Ministry of Planning and Investment shall organize, in the third and forth quarters of 2002 and the first quarter of 2003, the implementation of the policy measures mapped out by the Government in its Decree No.90/2001/ND-CP of November 23, 2001 on supporting the development of small- and medium-sized enterprises. More concretely:

- Summing up and working out programs on support for small- and medium-sized enterprises.

- Setting up a Department for Development of Small- and Medium-Sized Enterprises.

- Setting up a Council for Promotion of the Development of Small- and Medium-Sized Enterprises.

- Setting up Centers for Provision of Technical Support for Small- and Medium-Sized Enterprises in Hanoi, Ho Chi Minh and Da Nang cities.

9. The Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Finance Ministry in finalizing in the third quarter of 2003 the Bill amending and supplementing the Domestic Investment Promotion Law along the direction of effecting the regime of investment preference registration (canceling the investment preference certificates), ensuring that enterprises and individual business households which implement investment projects eligible for investment preferences shall automatically enjoy the law-prescribed preferences, without having to ask for permission from the competent State bodies.

10. In the second quarter of 2003, the Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Government Commission for Organization and Personnel and relevant ministries and branches in submitting to the Government a scheme on the major central and provincial/municipal agencies to be tasked to coordinate in monitoring, summing up the situation, detecting and suggesting measures to remove difficulties and redress errors of the private economy, and organizing a uniform business registration system from the central to grassroots level.

11. The Ministry of Planning and Investment shall finalize in the first quarter of 2004 the scheme on amendment and supplementation of the Enterprises Law along the direction of creating and maintaining a common legal ground for the setting up, organization and operation of enterprises of all economic sectors, including domestic and foreign-invested enterprises; creating favorable and convenient conditions for private enterprises to enter into joint ventures with foreign investors; ensuring that private enterprises may participate on an equal footing with the State enterprises in different domains and branches of the national economy.

II. Land policies

To implement the land policies mentioned in the Government�s program of action for implementation of the Resolution of the IXth National Party Congress as well as in the Government�s resolutions and decisions related to land, the ministries, branches and localities should focus on performing the following tasks:

1. In the fourth quarter of 2002, the Ministry of Agriculture and Rural Development shall assume the prime responsibility and coordinate with the General Land Administration, the Finance Ministry and the People�s Committees of the provinces and centrally-run cities in guiding the "gathering of land and fields together" on the principle of voluntariness, mutual agreement and mutual benefits, in combination with field re-planning so as to gather land for commodity production development and rural trade and craft expansion.

2. In the fourth quarter of 2002, the General Land Administration shall assume the prime responsibility and coordinate with the Ministry of Agriculture and Rural Development, the Finance Ministry and local administrations of all levels in submitting to the Government supplements to the Decree which prescribes cases of land assignment without collection of land use levy and the granting of land use right certificates to agricultural cooperatives; prescribes the regime of exemption, reduction and deferred payment of land rentals for non-agricultural cooperatives; prescribes the residential land, special-use land, land lawfully transferred under law provisions, land assigned by the State to households or individuals having paid the land use levy and been granted land use right certificates, that, if wishing, shall be permitted to use their land for production and/or business, without having to shift to lease land and pay the land rentals.

3. In the first quarter of 2003, the Finance Ministry shall assume the prime responsibility and coordinate with the General Land Administration and the Ministry of Agriculture and Rural Development in submitting to the Prime Minister a scheme on the regime and procedures to refund costs of investment in production and business ground improvement to cooperatives when they are subject to the land recovery and thereby have to lease land.

4. In the third quarter of 2002, the Finance Ministry shall assume the prime responsibility and coordinate with the General Land Administration in submitting to the Government for promulgation a decree guiding the declaration and auction of land use right in order to mobilize capital sources among the population, and the use of money collected therefrom for investment in infrastructure and industrial projects.

5. The People�s Committees at all levels shall base themselves on the overall socio-economic development plans of their respective localities as well as their law-prescribed jurisdictions to organize from 2003 to 2005 the recovery of those land areas previously assigned or leased, which have been left unused or used for wrong purposes, in order to create a land fund for industrial and infrastructure development. For land areas falling under the deciding competence of the Prime Minister, the General Land Administration shall assume the prime responsibility and coordinate with the concerned ministries and branches in submitting to the Prime Minister a plan on land recovery and post-recovery bidding for the use thereof.

6. In the first quarter of 2003, the Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Ministry of Agriculture and Rural Development and the General Land Administration in submitting to the Government a scheme on decentralizing the competence to decide on the establishment of industrial parks, industrial clusters and craft villages to local administrations along the direction of creating favorable conditions for cooperatives and enterprises of all economic sectors to lease land for their business activities at reasonable rent rates, and simplifying procedures for investment in industrial parks, industrial clusters and craft villages, thereby encouraging cooperatives and enterprises to join in the building of such industrial parks, industrial clusters and craft villages.

III. Financial and credit policies

Apart from the financial and credit measures already mentioned in the Government�s program of action for implementation of the Resolution of the IXth National Party Congress as well as in the Government�s resolutions and decisions, the ministries, branches and localities shall focus on performing the following tasks:

1. In the third quarter of 2002, the Finance Ministry shall assume the prime responsibility and coordinate with the Ministry of Planning and Investment, Vietnam State Bank and the Development Assistance Fund in submitting to the Government for promulgation a decree amending and supplementing the Government�s Decree No.43/1999/ND-CP of June 29, 1999 on the State�s development investment credit along the direction of stipulating uniform capital-lending conditions for enterprises of all economic sectors, making the provisions on subjects entitled to investment preferences and projects entitled to enjoy investment preferential credit compatible with the Government�s Decree No.51/1999/ND-CP of July 8, 1999, which detailed the implementation of the Domestic Investment Promotion Law, and Decree No.35/2002/ND-CP of March 29, 2002 amending and supplementing Lists A, B and C promulgated together with the Government�s Decree No.51/1999/ND-CP of July 8, 1999.

2. In the third quarter of 2002, the Finance Ministry shall assume the prime responsibility and coordinate with the Ministry of Planning and Investment and Vietnam State Bank in submitting to the Government for promulgation a financial management mechanism for private enterprises.

3. In the third quarter of 2002, the Finance Ministry shall assume the prime responsibility and coordinate with the Ministry of Planning and Investment and Vietnam State Bank in submitting to the Government draft amendments and supplements to the accounting regime to make it compatible with the levels of small- and medium-sized enterprises, thus creating conditions for private enterprises to use audit services and effect annual financial publicity.

4. In the first quarter of 2003, the People�s Committees of the provinces and centrally-run cities shall proceed to set up credit guarantee funds for small- and medium-sized enterprises under the Government�s Decree No.90/2001/ND-CP of November 23, 2001 on supporting the development of small- and medium-sized enterprises, the Prime Minister�s Decision No.193/2001/QD-TTg of December 30, 2001 promulgating the Regulation on the setting up, organization and operation of credit guarantee funds for small- and medium-sized enterprises, and the Finance Ministry�s Circular No.42/2002/TT-BTC of May 7, 2002 guiding the setting up of credit guarantee funds for small- and medium-sized enterprises.

5. In the third quarter of 2002, the Finance Ministry shall assume the prime responsibility and coordinate with Vietnam State Bank and the Development Assistance Fund in submitting to the Prime Minister a scheme on the establishment of the Import- Export Bank so as to provide support (in terms of lending, credit sale, deferred payment...) for export goods production on the basis of summing up experiences on export credit support in the past time.

6. In the fourth quarter of 2003, the Trade Ministry shall assume the prime responsibility and coordinate with the Finance Ministry in guiding the provinces and centrally-run cities to set up trade promotion support funds on the basis of local budgets and other lawful financial sources in order to provide support for enterprises in market development and for business development services.

7. In the third quarter of 2003, the State Securities Commission shall submit to the Government a scheme on the establishment of the over-the-counter (OTC) market so as to create conditions for small- and medium-sized private enterprises to participate in the securities market, thereby creating more capital mobilization channels.

8. In the fourth quarter of 2003, the Finance Ministry shall assume the prime responsibility and coordinate with the concerned ministries and branches in submitting to the Government a scheme on amendment and supplementation of the Law on Agricultural Land Use Tax regarding the exemption from agricultural land use tax till 2010 for peasant households that have agricultural land areas within the land-use limits; adjustment and supplementation of the Law on Enterprise Income Tax: exemption from the enterprise income tax in a given period of time for newly-transformed or newly-founded agricultural, forestry, salt-making or fishery cooperatives.

IV. Policies on labor-wages, training, sciences and technologies

1. In the fourth quarter of 2002, the Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Finance Ministry, the relevant ministries and branches, the People�s Committees of the provinces and centrally-run cities and Vietnam Union of Cooperatives in submitting to the Government a plan on training demand, contents and forms, and the allocation of funding for implementation of the plans on training and fostering cadres for cooperatives.

2. In the third quarter of 2003, the Ministry of Labor, War Invalids and Social Affairs shall assume the prime responsibility and coordinate with the Finance Ministry and the concerned ministries and branches in submitting to the Government for promulgation a decree on social insurance policy for cooperative members and laborers working in cooperatives as well as individual business households and private enterprises.

3. In the third quarter of 2003, the Ministry of Labor, War Invalids and Social Affairs shall assume the prime responsibility and coordinate with the Finance Ministry and the concerned ministries and branches in submitting to the Government for promulgation a decree on unemployment insurance policy along the direction of setting up unemployment insurance funds to be contributed jointly by the employers and employees and partly supported by the State.

4. In the fourth quarter of 2003, the Ministry of Labor, War Invalids and Social Affairs shall assume the prime responsibility and coordinate with the State Inspectorate and the concerned ministries and branches in submitting to the Government for promulgation a decree on the handling of enterprises� violations regarding the signing of labor contracts, salaries, wages and working time, labor hygiene and safety conditions.

5. In the second quarter of 2003, the Ministry of Labor, War Invalids and Social Affairs shall assume the prime responsibility and coordinate with the concerned ministries and branches and Vietnam Union of Cooperatives in submitting to the Government a scheme guiding the implementation of job-training policies for the collective economy under the provisions of the Cooperatives Law.

6. In the fourth quarter of 2003, Ministry of Labor, War Invalids and Social Affairs shall assume the prime responsibility and coordinate with the concerned ministries and branches in submitting to the Government a scheme on the use of part of the State budget capital sources and part of preferential credit to support laborers in learning new jobs in service of the objective of economic restructuring and job creation; building a mechanism on the division of responsibility among three parties: the State, enterprises and laborers in covering the job-teaching and -learning expenses; supporting the opening of free-of-charge short refresher courses to foster scientific and technological knowledge for business households and private enterprises.

7. In the first quarter of 2003, the Ministry of Science, Technology and Environment shall assume the prime responsibility and coordinate with the other ministries and branches in submitting to the Government a scheme on encouraging scientific and technological research institutions to join cooperatives in transferring scientific and technological advances to cooperatives, researching into the production of new products, exploiting and using sources of raw materials available at home.

8. In the second quarter of 2003, the Ministry of Science, Technology and Environment shall assume the prime responsibility and coordinate with the other ministries and branches in submitting to the Government a scheme on expanding the system of scientific and technological consultancy services for business households and enterprises; providing support for enterprises to apply information technologies, lease or buy equipment by installment-payment mode for the renewal of their technologies; and well performing the task of industrial property right protection.

9. In the fourth quarter of 2002, the Emulation and Commendation Institute shall assume the prime responsibility and coordinate with the Ministry of Culture and Information in submitting to the Government for promulgation a regulation on commendation of individuals, enterprises, cooperatives and other organizations that efficiently apply advanced technologies, thereby raising the quality and competitiveness of their products.

V. Market support, trade and investment promotion policies

1. The People�s Committees of the provinces and centrally-run cities that use the local budgets in combination with the enterprises� resources shall adopt appropriate mechanisms and policies to support the building of infrastructure, harbors and storing yards as well as trade centers to introduce products, provide trade and investment consultancy as well as information on domestic and overseas markets. The operations of these trade centers shall be organized on the principle of self- funding.

2. In the fourth quarter of 2002, the ministries, the agencies attached to the Government and the People�s Committees of the provinces and centrally-run cities shall elaborate and implement programs on support for cooperatives and enterprises, first of all, small- and medium- sized enterprises, in business starting, job and entrepreneur training, technology transfer and application, trade promotion and export support through diversified, appropriate and efficient modes and forms.

3. In 2003, the People�s Committees of the provinces and centrally-run cities, the ministries and agencies attached to the Government, that engage in operations related to enterprises and cooperatives, shall have to set up their own websites to update information on policies, plannings and socio-economic development plans; information on domestic and overseas markets, exhibitions and fairs to introduce products; medium- and long-term forecasts on the development trends of trades and products at home and abroad; national programs and projects as well as other development projects funded by the State budget capital or other foreign capital sources, and at the same time connect them with the national information network so that anybody that needs such information may access thereto.

C. ORGANIZATION OF IMPLEMENTATION

I. The ideological, information and propagation work

1. In the third and fourth quarters of 2002, the Ministry of Culture and Information shall coordinate with the ministries, branches and localities in organizing the thorough study of the resolutions of the fifth plenum of the IXth Party Central Committee on developing the collective and private economies; multiplying the models of new-typed cooperatives and efficient collective economy; propagating and launching in the entire society and among the entire population a movement of honoring entrepreneurs and encouraging enterprise establishment and business development, paying special attention to the work of making investors and businessmen thoroughly understand and feel assured of the Party�s long-term undertakings on development of the collective and private economies.

2. In the third quarter of 2002, the Government Commission for Organization and Personnel shall organize the implementation of Decree No.02/CP of November 2, 1997 specifying the ministries� and ministerial-level agencies� tasks, powers and State management responsibility towards cooperatives.

3. In the third and fourth quarters of 2002, the Ministry of Planning and Investment shall coordinate with the ministries, branches and localities in organizing extensive training courses on the Enterprises Law for district, commune and ward officials; directing departments and branches to remove difficulties met by enterprises in their business activities; guiding and advising small-industry and handicraft, traditional craft or farming households to set up enterprises, especially accelerating the implementation of the Enterprises Law in rural and mountainous areas.

II. Deployment of implementation

Right after the promulgation of this Program of action, the Ministry of Planning and Investment, the ministries, branches and People�s Committees of the provinces and centrally-run cities shall take initiative in organizing the propagation, popularization and education about the Resolution on further renewing the mechanisms and policies, for encouraging and creating conditions for development of, the private economy and the Resolution on further renewing, developing and raising the efficiency of, the collective economy as well as the Government�s programs of action to the State administration apparatus at different levels, organizations, associations, mass organizations and among people of all strata, especially among the business community; guiding branches and levels to elaborate their own programs of action for implementation of the resolutions of the fifth plenum and this Program of action.

III. Monitoring of implementation

1. The Ministry of Planning and Investment shall have to monitor the implementation of this Program of action, make biannual reviews and report thereon to the Prime Minister.

2. The ministries, the ministerial-level agencies, the agencies attached to the Government and the People�s Committees of the provinces and centrally-run cities shall, basing themselves on this Program of action of the Government, concretize their respective agencies� or localities� programs of action for implementation of the resolutions of the fifth plenum of the Party Central Committee.

Prime Minister
PHAN VAN KHAI